Director of Listed Chinese Company Embezzles $8 Million, Uses Funds to Purchase Bitcoin Mining Rigs

Director of Listed Chinese Company Embezzles $8 Million, Uses Funds to Purchase Bitcoin Mining Rigs

A Chinese prosecutor is reported to have given a thumbs as much as the arrest of a listed huge knowledge firm director accused of embezzling $8 million and utilizing the funds to purchase bitcoin mining rigs. Although Li Qunnan has denied the allegations, executives insist their proof implicates him.

Director’s Unsanctioned Use of Funds Discovered in November 2021

A prosecutor in Beijing, China, has reportedly permitted the arrest of a former director of a listed huge knowledge agency who’s accused of utilizing fraudulently acquired funds to buy bitcoin mining rigs. According to the corporate’s filings with Shanghai Stock Exchange, the director, Li Qunnan, is alleged to have embezzled about $8 million (55.53 million yuan) from Zhongchang Big Data.

As per one Chinese language report, Qunnan, a former chairman of Zhongchang Big Data, is assumed to have misappropriated funds throughout his tenure as a senior government of the corporate. Zhongchang Big Data claimed it solely grew to become conscious of the director’s unsanctioned actions in November 2021 when the corporate’s new administration carried out an “inspection of the subsidiary corporations to standardize the company governance.”

After the inspection outed Qunnan because the wrongdoer that had been misappropriating funds, the previous director is reported to have despatched a press release to Zhongchang executives during which he denied the allegations.

Company Funds Used to Pay for Hosting Fees

However, regardless of Qunnan’s denial, Zhongchang executives have insisted that he’s the wrongdoer and have produced proof to help their assertion. For occasion, the executives allege that between January to September 2021, their firm paid for “servers” price $4.1 million, however these don’t seem in its books. Upon inspection, the servers had been discovered to be “Whatsminer mining machine (mannequin: M31S-76T44W), supercomputing server (mannequin S10Pro),” the report stated.

Besides paying for the bitcoin mining machines, Zhongchang claimed the previous director additionally used the corporate’s funds to pay for the internet hosting charges which totalled $3.8 million.

Meanwhile, the report stated Qunnan has refused to cooperate with investigators and is at the moment considered overseas.

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